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PENN Entertainment (PENN) Q2 Earnings & Revenues Top Estimates
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PENN Entertainment, Inc. (PENN - Free Report) reported second-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. Following the results, the company’s shares increased 9.1% during trading hours on Aug 9.
Earnings & Revenue Discussion
In the quarter under review, PENN reported adjusted earnings per share (EPS) of 48 cents beating the Zacks Consensus Estimate of 39 cents by 23.1%. In the prior-year quarter, it reported adjusted EPS of 15 cents.
Total revenues of $1,674.8 million beat the Zacks Consensus Estimate of $1,655 million. The top line improved 2.9% on a year-over-year basis, driven by solid performance in the Interactive segment.
The Northeast segment delivered revenues of $688 million, up 0.5% year over year. Our model predicted the metric to rise 2.9% year over year. Revenues from the Midwest, South and West segments came in at $293.3 million, $308.3 million and $130 million, down 1%, 8.9% and 15.5% year over year, respectively.
The Interactive and Other segments’ revenues totaled $257.7 million and $6.2 million, up 66.4% and 5.1% year over year, respectively.
PENN Entertainment, Inc. Price, Consensus and EPS Surprise
During the quarter under discussion, adjusted EBITDAR declined 5.5% from the year-ago quarter’s level to $476.8 million. Our model suggested the metric to fall 4.7% year over year. Adjusted EBITDAR margin contracted 250 basis points to 28.5%.
Other Financial Information
As of Jun 30, 2023, the company had cash and cash equivalents of $1,271.6 million compared with $1,624 million as of Dec 31, 2022. Bank debt as of Jun 30, 2023, was $1,512.5 million, down from $1,531.2 million at 2022 end. During the quarter under review, PENN repurchased $99.8 million of common stock.
American Public Education, Inc. (APEI - Free Report) reported better-than-expected second-quarter 2023 results, wherein earnings and revenues outpaced the Zacks Consensus Estimate. However, both metrics dipped on a year-over-year basis.
APEI benefited from the solid contributions of the American Public University System and Hondros College of Nursing segments. However, the dismal performance of the Rasmussen University segment partially offset the Other segment.
Hasbro, Inc. (HAS - Free Report) reported mixed second-quarter fiscal 2023 results, with earnings missing the Zacks Consensus Estimate and revenues outshining the same. The metrics declined on a year-over-year basis. Dismal performances of Franchise Brands, Partner Brands and Portfolio Brands affected the top line.
HAS announced the sale of its eOne Film and TV business to Lionsgate for approximately $500 million. It anticipates the deal to strengthen its financial flexibility and retire its floating rate debt (by approximately $400 million). Management expects to close the deal by 2023 end.
MGM Resorts International (MGM - Free Report) reported impressive second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both metrics surpassed the consensus estimate for the third consecutive quarter. Moreover, the top and bottom lines jumped on a year-over-year basis.
MGM’s upside was primarily driven by growth in business volume and travel activity, mainly at MGM China and Las Vegas Strip Resorts.
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PENN Entertainment (PENN) Q2 Earnings & Revenues Top Estimates
PENN Entertainment, Inc. (PENN - Free Report) reported second-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. Following the results, the company’s shares increased 9.1% during trading hours on Aug 9.
Earnings & Revenue Discussion
In the quarter under review, PENN reported adjusted earnings per share (EPS) of 48 cents beating the Zacks Consensus Estimate of 39 cents by 23.1%. In the prior-year quarter, it reported adjusted EPS of 15 cents.
Total revenues of $1,674.8 million beat the Zacks Consensus Estimate of $1,655 million. The top line improved 2.9% on a year-over-year basis, driven by solid performance in the Interactive segment.
The Northeast segment delivered revenues of $688 million, up 0.5% year over year. Our model predicted the metric to rise 2.9% year over year. Revenues from the Midwest, South and West segments came in at $293.3 million, $308.3 million and $130 million, down 1%, 8.9% and 15.5% year over year, respectively.
The Interactive and Other segments’ revenues totaled $257.7 million and $6.2 million, up 66.4% and 5.1% year over year, respectively.
PENN Entertainment, Inc. Price, Consensus and EPS Surprise
PENN Entertainment, Inc. price-consensus-eps-surprise-chart | PENN Entertainment, Inc. Quote
Operating Headlines
During the quarter under discussion, adjusted EBITDAR declined 5.5% from the year-ago quarter’s level to $476.8 million. Our model suggested the metric to fall 4.7% year over year. Adjusted EBITDAR margin contracted 250 basis points to 28.5%.
Other Financial Information
As of Jun 30, 2023, the company had cash and cash equivalents of $1,271.6 million compared with $1,624 million as of Dec 31, 2022. Bank debt as of Jun 30, 2023, was $1,512.5 million, down from $1,531.2 million at 2022 end. During the quarter under review, PENN repurchased $99.8 million of common stock.
Zacks Rank
PENN Entertainment currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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American Public Education, Inc. (APEI - Free Report) reported better-than-expected second-quarter 2023 results, wherein earnings and revenues outpaced the Zacks Consensus Estimate. However, both metrics dipped on a year-over-year basis.
APEI benefited from the solid contributions of the American Public University System and Hondros College of Nursing segments. However, the dismal performance of the Rasmussen University segment partially offset the Other segment.
Hasbro, Inc. (HAS - Free Report) reported mixed second-quarter fiscal 2023 results, with earnings missing the Zacks Consensus Estimate and revenues outshining the same. The metrics declined on a year-over-year basis. Dismal performances of Franchise Brands, Partner Brands and Portfolio Brands affected the top line.
HAS announced the sale of its eOne Film and TV business to Lionsgate for approximately $500 million. It anticipates the deal to strengthen its financial flexibility and retire its floating rate debt (by approximately $400 million). Management expects to close the deal by 2023 end.
MGM Resorts International (MGM - Free Report) reported impressive second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both metrics surpassed the consensus estimate for the third consecutive quarter. Moreover, the top and bottom lines jumped on a year-over-year basis.
MGM’s upside was primarily driven by growth in business volume and travel activity, mainly at MGM China and Las Vegas Strip Resorts.